no.2 “roles of city leaders to attract good involvement of ... · province of cebu(mcdcb) vice...

No.2 “Roles of city leaders to attract good involvement of private sector”

City/Organization Title Name

1 Batam Indonesia Free Zone Authority

Vice Chairman Mr. Jon Arizal

2 Cebu Mayor Mr. Michael L. Rama Province of Cebu(MCDCB) Vice Chair of Research

Program Organizational Development Executive Committee, Metro Cebu Development and Coordinating Board

Ms. Dominica Bardinas Chua

3

Ulaanbaatar Head of Strategic Policy and Planning

Mr. Bayarbaatar Sandagdorj

4 Vientiane Director General of Department

Prof. Douangsavanh Linkham

5 Asian Development Bank Director, Concurrent Technical Advisor(PPP), Office of PPP

Mr. Takeo Koike

6 KPMG AZSA Sustainability Co., Ltd.

Director Mr. Stuart Kay

7 Ministry of Foreign Affairs of Japan Director for Development Assistance Policy Coordination Division, International Cooperation Bureau

Mr. Tadayuki Miyashita

8 Ministry of Land, Infrastructure, Transport and Tourism, Japan

Director for International Affairs Office, City Bureau

Mr. Shinichi Fukunaga

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development

Senior Director, Project Department

Mr. Hiroki Kawata

9 PricewaterhouseCoopers Co., Ltd. Vice President, Cities Solution Centre Japan

Mr. Hidetomo Nagata

10 World Bank Senior Economist Dr. Hyoung Gun Wang

11 Former Vice President of Asian Development Bank / Special Advisor for Y-PORT Center

Dr. Bindu N. Lohani

BATAM INDONESIA FREE ZONE AUTHORITY

City of Yokohamal | October 19th – 21st , 2015

JON ARIZAL Vice Chairman e-mail: [email protected]

BATAM : RENEWED BUSINESS OPPORTUNITIES 4th Asia Smart City Conference


Background :

• Previously recognized as BIDA (Batam Industrial Development Authority).

• Along with the enactment of Batam as a Free Trade Zone based on Laws No. 44 year 2007, BIDA is currently recognized as BIFZA (Batam Indonesia Free Zone Authority)

• BIFZA is a Government Institution

Main Role:

• Organizing, Managing and Developing the Free Trade Zone and Free Port of Batam

Location:

• 20 km of South Singapore situated between Malacca Strait and Singapore Strait

• The area of Batam is 415 sq-km and total area of Barelang (Batam-Rempang-Galang) is 715 sq-km

Source: BP Batam Ringkasan Eksekutif

PROFILE BIFZA


22 Industrial Estates 1,699 Multinational Companies

(Electronic Electrical Industry and supporting Industry, Shipyard Industry, Supporting Oil Company Industry, Tourism, Trading)

ECONOMIC INDICATOR

January - December 2014 135 new companies valued at 568 Million USD

Realization (LKPM)y-o-y 2014 2015 Investment (US $ Thousand) 117,537 331,659

Projects 31 158

• Laporan Kegiatan Penanaman Modal (LKPM) / Investment Activities Report • Jan-Jun Period (First Semester) • Up to December 2014

Total Investment is USD 17.71 Billion

Government Investment USD 3.62 Billion

Domestic Investment USD 5.82 Billion

Foreign Investment USD 8.27 Billion

BATAM INDONESIA FREE ZONE AUTHORITY Source: BP Batam Ringkasan Eksekutif

4 Cargo Ports/ 5 Ferry Terminals

International Airport

Electricity of 372.25 MW

Clean Water 6 water reservoirs

More than 1,600 Paved Roads

Telecommunications 111,768 Line Units

CURRENT BIFZA INFRASTRUCTURE


Batam- Bintan Bridge

Toll Road

Batu Ampar Port Expansion

Hang Nadim Airport Expansion

Monorail

Tanjung Sauh Container Port

FORTHCOMING PROJECT DEVELOPMENT


Batam Head Office BIDA Building Batam Centre, Batam 29400 Tel. (62-778) 462047, 462048 Fax. (62-778) 462240, 462456 E-mail : [email protected] [email protected]

Jakarta Representative Office Jl. DI Panjaitan Kav 24 Jakarta 13410 Tel : (62-21) 8580009, 8580010, 8580011 Fax : (62-21) 8580038

Singapore Liaison Officer Mrs. Gloria Tan 111 North Bridge Road Peninsula Plaza #21-01 Singapore 179098 Tel : (65) 67343411 Fax : (65) 62359959 E-mail: [email protected] [email protected]

Japan BIDA Liaison Officer Mr. Hajime Kinoshita Shinsabashi TOEI Building 7FI.4-12-22 Minami Semba Chuo-ku, Osaka Phone / Fax : (81-6) 6253-6133, Fax (81-6) 6253-6134 Email : [email protected]

www.bpbatam.go.id

FOR FUTURE INFORMATION

mailto:[email protected]


Thank You

THANK YOU

SPIDERWEB APPROACH DEVELOPMENT STRATEGY

• 4 Clusters of Cebu City Government:

1. Frontline

2. Revenue Generation

3. Support Services

4. Policies & Planning

AT – Action Team

• LGU & Private Sectors Partnership

Existing PPP Framework in PH

B.O.T. Law under the National PPP Center

J.V. by Local Government Units under RA 7160

Mactan Cebu International Airport 3rd Mactan Cebu Bridge

Existing PPP in Cebu by the National Government and Local Government Units

SRP FILINVEST-CEBU CITY (LGU)

J.V.

South Road Properties (SRP) SALE

SM Malls

P.P.P. Cebu City Gov’t.

AYALA-SM CONSORTIUM

SRP

West Cebu Industrial Business Park

Cebu Light Industrial Business Park

Mactan Economic Zone I & II

Asiatown IT Park

Cebu Techno Park /New Township 1

Private Sector and Metro Cebu LGUs Cooperation

MEGA CEBU: Shared Public – Private Sector Platform for Sustainable Urban

Development

October 20, 2015 Roles of City Leaders to Attract Good

Involvement of the Private Sector

4th Asia Smart City Conference Yokohama, Japan

Making W.A.V.E.S.: Finding, Building, & Strengthening Connections

Making W.A.V.E.S.: Finding, Building, & Strengthening Connections

Connections Find Build Strengthen

Smart City-Region

GOVERNANCE

Smart City-Region

VISION, PLAN & ACTION

Assets & Challenges

Interests & Directions

Aspirations & Vision

Information, Knowledge & Understanding

Development Strategies & Plans

No Entry No Water or We’ve Got SW No Dry Ground

Assets & Challenges

More People in Cities Low Urban Competitiveness Sprawl: Unsustainable Growth

Leaders Who Want Change

Leaders Who Want to Leave

a Legacy

Leaders Who Want to

Collaborate

Interests & Directions

Shared Identity • Tangible & Intangible

Assets

Common Ground • History & Significance

Collective Future • W.A.V.E.S.: Mega Cebu

Vision 2050

Aspirations & Vision

City Region • Metropolis: Mega Cebu

Smart Growth (6Cs): Connected Compact Complete Complex Convivial Conserving

3 Es • Evidence • Expertise • Engagement

Information, Knowledge & Understanding

3 + 1 Development Strategy 4:7:1 Roadmap

Development Strategies & Plans

4 STRATEGIES 7 SUB ROADMAPS

OVER ALL ROADMAP

The 4th Asia Smart City Conference « Session 2»

Roles of city leaders to attract good involvement of private sector

20 October 2015 at InterContinental Yokohama Grand Takeo Koike Director Office of Public Private Partnership

Office of Public-Private Partnership 2

The Asian Development Bank

ADB was established by agreement of its member countries to foster economic growth and co-operation in the Asia and Pacific region, and to contribute to economic development of its developing member countries in the region, collectively and individually.

Established in 1966 67 member countries (of which

48 are regional members) HQ in the Philippines 28 field offices in Asia 3 representative offices in Tokyo,

Frankfurt and Washington, DC Over 3,000 employees Long-term credit ratings: AAA

Quick Facts

ADB HQ

ADB Field Offices


Public-Private Partnership

Huge need for infrastructure development • Use of private sector resources (financing, technical expertise and efficiency) Partnership is the most important • Inviting the private sector ≠ The public sector should become hands-off • PPP should be discussed as one of the methods to deliver infrastructure services

where public sector undertaking remains critical

Resources

Responsibilities

Conventional public investment Public-Private Partnership

public

public

public

public

private

private

* Illustrative purpose only


• Underdeveloped regulatory frameworks & unclear implementation • Limited coordination among central ministries / regional governments • Delay in land acquisition and insufficient compensation / resettlement • Delay of approval / permit processes (deal specific/symptomatic?)

• Inconsistent and insufficient political commitment • Limited or lack of understanding about PPP contracts, private sector’s risk

appetite/tolerance, risk allocation, government’s role & responsibility • Lack of government capacity for project identification / PPP conceptualization

Advocacy and capacity

development

Enabling environment

If PPPs can deliver more, why not more prevalent in Asia?

• Lack of long-term local currency liquidity, e.g., weak banking sector, lack of project bond market / institutional investor interest in asset class

• Lack of secondary or securitization market for project finance assets • Recent regulations (Basel III) constrain banks’ to provide project finance • Private infrastructure finance for country risk requires credit enhancement

• Limited capacity for project and budget implementation • Limited capacity for project selection and prioritization / bid management • Limited fund availability for initial deal structuring, pre-feasibility study • Poor quality of project viability assessment with wrong assumptions/forecasts

Project development

Project financing

Challenges are common


ADB’s PPP Operational Framework and Modalities

Pillar 1

• Create awareness • Invoke leadership • Identify PPP potential in

sector planning and the private sector development agenda

• Develop capacity of Government

• Enhance external knowledge management links

Pillar 2

• Develop policy, legal, regulatory and institutional framework to facilitate, guide and manage the development of PPPs (country and sector specific)

Pillar 3

• Assist in the development of pathfinder projects

• Provide support (including advisory support) throughout the process from structuring to bid management and contract award/financial close.

Pillar 4

• Provide long-term debt financing including local currency

• Catalyze commercial financing by equity, debt and guarantees.

• Provide public sector financial support through schemes to ensure viability and cash flow sustainability.

Advocacy and capacity development

Enabling environment Project development Project financing

Knowledge dissemination, training

PPP units; Planning and coordination

PPP Act; Streamlined PPP regulation; Tariff reform Feasibility studies

Preparation support

Transaction

Advisory Services

Sovereign financing

Nonsovereign financing

ADB is unique in having comprehensive operational modalities to support PPP


How can ADB catalyze more PPPs?

DMC Government / Ministry of Finance / Line Ministry

PPP Project Company

Private Financiers & Investors

Publicly-financed Infrastructure

Private Sector O&M Service

Non-Sovereign Financing - Project Debt / Equity - Project Guarantees

Sovereign Financing & Assistance (Loan, TA etc…)

State-owned Financial intermediary

Sovereign PPP project support • Project Viability Gap Funding • Project availability payment • Funding of government debt/equity

BOT / Concession Service/Mgmt Contract

On-lending program

Public Sector Contracting Authority / Line Ministry

Transaction Advisory Services

Donor-funded facilities

Donors

National Project Preparation Facility

Private Investment Fund/Vehicle

1

2

3 4

5

6

7


What can we do to achieve successful PPP?

Create world class legal / regulatory framework + institutions Show strong, consistent, universal government commitment Stand on economic and social rationale Make the process transparent, consistent and predictable Accelerate reforms to establish financial sustainability Provide partnership support Take expert advice and prepare projects carefully Look for suitable financing sources Show an investor friendly face

ADB can work with you!

Japan’s PPP Assistance Measures for Facilitating Quality Infrastructure in ASIA

Tadayuki Miyashita Director,

Development Assistance Policy Coordination Division, International Cooperation Bureau, Ministry of Foreign Affairs of Japan

Oct. 20th, 2015

There are huge needs for infrastructure development in Asia, but public financing can not meet such needs

Potential actors such as private sectors and local governments in Japan are willing to cooperate for the development of Asian countries

①Insufficient relevant legislation system ②Lack and/or delay of related infrastructure development ③Insufficient support and finance for project formulation and implementation

Solution: PPP

Japan’s PPP for the development of Asian Countries

Challenges facing PPP

3

(1) PPP Infrastructure F/S assistance (2) Private Sector Investment Finance (3) Viability Gap Funding (VGF) (4) Equity Back Finance (EBF) (5) Two-Step Loan (6) Contingent Credit Enhancement Facility for PPP Infrastructure Development (7) New Grant Aid for PPP Projects

③New ODA scheme

①Technical Cooperation

(1) Improvement of PPP-related institution (2) Improvements in government financial support (3) Examination of government funding possibility

Japan’s PPP assistance measures

②ODA Loans and Grant Aid

■Growing need for Infrastructure in Indonesia ▶ Indonesia’s Mid-Term Development Plan (2015-2019)

Too many institutions were involved in infrastructure development in the Indonesian government

Lack of experts for promoting PPP

ISSUE

CASE : Japan’s PPP projects in Indonesia

4

Japan provided expert advisory service for infrastructure implementation Assist KPPIP staff in making draft of KPPIP priority project list Develop tools and templates to assist KPPIP staff in prioritization, action plan development, etc. Assist KPPIP staff in analyzing the regulations and recommend revisions

Solution ②

PPP-Network Enhancement Project MPA(Metropolitan Priority Area) Support Facility

KPPIP development support Key functions Core process Funding decision guideline

Solution ①

Foundation of Infrastructure Development in Indonesia

JOIN - Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development -

October 2015

1. What is JOIN?

1

We are the first and only government-private sponsored fund in

Japan that specializes in overseas infrastructure investment.

We support your country on building safe and reliable infrastructure through PPP arrangements.

We work in collaboration with

Japanese companies, banks,

institutions (JICA, JBIC, NEXI,

etc.). & government.

Spreading Safe and Reliable Infrastructure Around the World

2. What does JOIN do?

2

JOIN is a “HANDS-ON” fund: we not only provide funding but we also bring Japanese expertise and high-end technology solutions to infrastructure projects worldwide.

Equity Investment

Technology Transfer Human Resource Development

3. Why was JOIN established?

3

JICA JBIC NEXI J-Company

Banks

Target of Infrastructure-related Orders

10 Trillion yen (2010) → 30 Trillion yen (2020)

(Ministerial Council for Overseas Infrastructure Development)

<Government Priority Policy> To promote Japan’s infrastructure system in the

overseas markets

JOIN J-Company

Cooperation

Loan / Equity / T.A. / Master Plan / Policy Advice

Equity / O & M / Management / H.R. Development

Japan’s contribution to infrastructure projects in overseas countries will lead to mutual economic growth

Disposition of Shares (when the project has achieved its initial purpose, etc.)

4

Infrastructure Projects（SPC）

JICA / JBIC / NEXI / J-Banks

Local Banks

Host Governments

Concession Support

4. How does JOIN function?

Master Plan / Developer E.P.C. O & M

Negotiation Equity, etc. Loan, etc.

Local Companies

Loan Equity

J-Companies JOIN

Capital: 12 billion yen [as of June 2015] （J-Gov: 6 billion yen, J-Companies: 6 billion yen) Investment Capacity: 136 billion yen [FY2015]

Technical support / transfer

H.R. development Management Support

5

Logistics

5. Our Focus

High-speed railways Urban railways / transport system Toll Roads

Ships / Offshore units Port terminals

Airport terminals Urban development

6

J-Gov.

J-Investors SPC

O&M Real estate

Development

Public Investment

Railway Tracks Right of way, etc.

Concession Ridership Support Subsidy

JOIN Local Companies Equity

Railway Business Equity

Loan

Host Gov.

Operator/ Tech Support Training Program

EPC Contractor

JICA / JBIC / Banks

Railway Company

Local Banks Loan

6. Illustration of the Prospective Project – High-speed Railway

Loan TA

# Important Points: (a) The role of the host governments, (b) Integration of railway technology

7. Company Outline

7

2-2-3 Marunouchi, Chiyoda-ku, Tokyo (Marunouchi-Nakadori Building, 9F) Location

TEL: +81-3-5293-6700 (main line) / FAX: +81-3-3218-5561 Contact

http://www.join-future.co.jp/english/ Website

Company Name

Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN)

Established October 20, 2014

E-mail [email protected]

President and CEO Takuma Hatano

Hyoung Gun Wang Senior Economist

SAR Urban Unit

Smart cities Role of city leaders to attract good

involvement of private sector

4th Asia Smart City Conference October 20 2015

I C T

Function Target

24-hour Monitoring Public services :

Transportation, Security, Waste … Real-Time Information

sharing

Environment : Air, Energy, Water, Disaster …

Analysis Based upon Real-time Field Data

Governance : Tax, Procurement, Custom ..

Real-time response

Prompt Citizen Feedback

Effect

Decreasing : Green Gas, Crime, Pollution,

Vulnerability

Increasing : Efficiency, Productivity,

Transparency, Competitiveness, Monitoring, Land Management

2

ICT impact on urban development

3

Smart City A smart city is characterized as the integration of technologies into a strategic approach to make a city more livable, competitive and inclusive

Smart City

Sustainable City

Slim City

Eco City

Intelligent City

Knowledge City

Digital City

Low Carbon City

U-City

Embe

dded

In

telli

genc

e Reduced Footprint

Smart Growth

Connected Environments

(Source: Navigant Research)

The Smart City in Context

4

Integrated Smart Cities


5

Inclusive Smart Cities

Smart Cities in SAR Countries Context

What’s 100 smart cities in India here 300M without electricity, 600M without toilets?

Hi-tech city, infrastructure and CCTV network that “keep out” the poor

“Is India's 100 smart cities project a recipe for social apartheid?” - The Guardian, May,2015

ICT as Enabler for Inclusive Cities

Smart services can make citywide impacts in cost efficient, visible and fast manners

<CPS> <Crime Prevention> <Complaints Portal> <Bus Kiosk>

Four Keywords of Smart City Solutions

Cloud: Connects public/private data to have effective cross-departmental collaboration and resource sharing. The scalability and cost-effectiveness reduce costs without cutting essential services. Big Data: Provides vital real-time insights from multiple data sources to make more analytic decisions, and respond faster in emergency. Mobile: Help cities reach citizens anywhere, anytime. Citizen-centric applications enable people to directly engage and interact with their city governments for services. Social media: can open two-way dialogues with citizens and businesses to better inform them and understand their needs.

Smart City Applications Sectors Applications Key Technologies City

Smart Government

Public safety, social care, tele-heath, e-education, smart street lighting, citizen portals, waste collection

Sensor networks, cloud computing services, data analytics, open data platforms, lighting networks, emergency response systems

Chicago, Houston, New York, Amsterdam, Helsinki, Bristol, Barcelona, Sunderland, Busan, Seoul, Rio de Janeiro

Smart Water Water system upgrades, consumption monitoring, wastewater treatment, environmental safety systems, flood management

Smart water meters, sensor and communications networks, water monitoring and management systems, water system analytics, weather forecasting

Dubuque, Masdar City, Nice, Paris, Washington, D.C.

Smart Transportation

Traffic monitoring and management, congestion management, road user charging, emergency response, public information systems, smart parking, integrated traffic light management

Intelligent transportation systems, EV charging systems, road use pricing systems, sensors networks, monitoring and management parking, traffic monitoring, predictive analytics, vehicle telematics, public portals and smart apps, open data platforms

Dallas, San Francisco, Stockholm, Amsterdam, Hamburg, Santander, Singapore, Shenzhen, Zhenjiang, Toyota, Rio de Janeiro

Smart Buildings Public sector energy management programs, grid integration for renewables, EV charging stations, lighting/waste/water management

Building energy management systems, energy performance management, grid integration, intelligent lighting systems

London, Amsterdam, Songdo, Tokyo, Yokohama

Smart Energy Demand management, EV support, energy efficiency program, renewable energy integration

Smart meters, home energy management, distribution automation, grid analytics, demand response systems

Austin, San Diego, Bilbao, Évora, Friedrichshafen, Lyon, Málaga, Yokohama


8

The World Bank: Tamil Nadu e-Governance Initiatives under TNUDP3 & TNSUDP, India

Initiatives in progress

• Centralized Web Application for ULBs: Property Tax & Birth/Death Certificates modules the 4 ULBs (09/14), Others rolled out (03/15), Full scale up of 29 ULB modules (09/15)

• Scale up of GIS Systems: Previous pilot GIS in 17 ULBs will be scaled up to 118 ULBs

• Mobile Applications: Will include training and support under TNSUDP New initiatives planned under TNSUDP

• Central Citizen Portal: gateway for all the application SW on an integrated web system

• Citizen Service Centers: Easier and efficient service delivery to citizens at ULB offices.

• Strengthening the ICT Infrastructure: Upgrading of ICT assets and infrastructure

• Capacity Building and Training: for ULB staff Model Cities Component

• Concept will be developed to support TN to the next level in ‘intelligent planning and coordination among multiple agencies’ to support ‘new models of governance’ in the urban sector

• Development of a model cities roadmap and action plan

9

Tamil Nadu’s E-Governance Projects Operating

Modules

Future

Planning

Traffic problem

Transportation problem

Solid waste problem

Water logging problem

Water(River) pollution

Housing problem

CHALLENGES

…

• Shortage of Manpower

• Lack of ICT trained & dedicated

manpower

• Lack of Logistics

• e-Governance systems

• Lack of ICT infra

(including basic equipment)

GAPS

…

The World Bank: TA to develop Smart City Initiatives for Dhaka, Bangladesh

+ Policy and action plans + Setting up the ICT Organization + Realistic projects (cost efficient) + Sustainable development

Top-Down:

Urban ICT/e-Gov.

Policy & Plan

+ based on Human-ware + Smart town test bed (connected community with VOC) + Strengthening self-participation ability (incentives from the city)

Bottom-Up:

Engaging Citizens

In Public Service

Smart City Approach for Dhaka (example)

ROADMAP Policy & Plan e.Gov Policy & Master Plan

Research Citizen Service

Web Portal 1

Mobile portal 1

Web Portal 2

Mobile portal 2

Education Center

Education & Evaluate Program

Research

CPS

Action Plan Action Plan Action Plan

Control Center CCTV based C.C Integrated C.C Research

Smart city roadmap for Dhaka (example)

Role of city leaders to attract good involvement of private sector:

Understand key success factors

Main components of a Smart City program

Environmental Sustainability

• Energy efficiency • Pollution • Resources

Economic Viability

• Investment • Jobs • Innovation

Smart Energy

Citizen Well-Being

• Public safety • Education • Health care • Social care

Smart Transport

Smart Buildings

Smart Government

Smart City Operating System

Sensor Networks Intelligent Devices Communication Platforms Data Analytics Control Systems Web Services

Smart city vision, objectives and

Policies

Smart infrastructure

Services

Smart Information

System

Smart Water

A multi-dimensional Smart City approach to make a city more livable, competitive and inclusive

Role of city leaders to attract good involvement of private sector: A package of engagements

Thank you

Hyoung Gun Wang Senior Economist, SAR Urban Unit

[email protected]

4th Asia Smart City Conference October 20 2015

no.2 “roles of city leaders to attract good involvement of ... · province of cebu(mcdcb) vice...

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